Recent Changes in UK Employment Law: A Comprehensive Guide for Employers and Employees

The UK employment landscape is constantly evolving, with new laws and regulations being introduced to protect workers’ rights and ensure fair treatment in the workplace. This comprehensive guide examines the most recent changes in UK employment law, providing valuable insights for both employers and employees. By staying informed about these developments, all parties can better understand their rights and obligations in the modern workplace.

Key Changes in UK Employment Law

1. Flexible Working Requests

Recent amendments to the Employment Rights Act 1996 have expanded the right to request flexible working arrangements. As of April 2024, employees can now make two flexible working requests in any 12-month period, up from the previous limit of one request per year. Additionally, employers must now respond to these requests within two months, down from three months previously.

Key points:

• Employees can make flexible working requests from day one of employment
• Employers must consider requests reasonably and can only refuse based on specific business grounds
• The process for making and handling requests has been simplified

For more information, visit the Acas guide on flexible working.

2. Statutory Sick Pay (SSP) Reforms

The UK government has implemented changes to Statutory Sick Pay (SSP) to provide better support for employees during periods of illness:

• SSP now starts from day one of absence, eliminating the previous three-day waiting period
• The weekly rate of SSP has increased to £109.40 for 2024/25
• Employees can now self-certify for up to 28 days, extended from the previous 7-day limit

These changes aim to reduce the financial burden on employees who are unable to work due to illness. For the latest SSP rates and information, visit the UK government’s SSP page.

3. Enhanced Protections for Pregnant Workers and New Parents

The Pregnancy and Maternity (Redundancy Protection) Act 2023 has strengthened protections for pregnant workers and new parents:

• The redundancy protection period now extends from the point an employee informs their employer of their pregnancy until 18 months after the birth
• This protection also applies to parents returning from adoption leave or shared parental leave
• Employers must offer suitable alternative vacancies to these protected employees in redundancy situations

For detailed guidance on pregnancy and maternity rights, consult the Equality and Human Rights Commission website.

4. Changes to Holiday Pay Calculations

Following recent court decisions and government guidance, there have been significant changes to holiday pay calculations:

• Regular overtime, commission, and certain bonuses must now be included in holiday pay calculations
• The reference period for calculating holiday pay has been extended from 12 to 52 weeks
• Workers on zero-hours contracts or irregular hours are entitled to pro-rata holiday pay based on hours worked

Employers should review their holiday pay practices to ensure compliance with these new requirements. The Acas website provides detailed guidance on holiday pay calculations.

5. Extension of Worker Status Protections

Recent legal decisions have expanded the definition of “worker” status, providing additional protections to individuals in the gig economy and other non-traditional working arrangements:

• Individuals classified as self-employed may now be entitled to worker rights, including holiday pay and the national minimum wage
• Employers must carefully assess the true nature of their working relationships to determine the correct employment status

The UK government’s employment status checker can help determine the correct classification of workers.

6. Gender Pay Gap Reporting

While not a new requirement, the obligation for large employers to report on their gender pay gap remains a crucial aspect of UK employment law:

• Organisations with 250 or more employees must publish their gender pay gap data annually
• The reporting deadline is 30 March for public sector organisations and 4 April for private and voluntary sector organisations
• Employers are encouraged to provide a narrative explaining their figures and outlining action plans to address any gaps

For more information on gender pay gap reporting requirements, visit the UK government’s gender pay gap service.

Impact on Employers and Employees

For Employers

1. Review and update policies: Ensure all company policies reflect the latest legal requirements, particularly regarding flexible working, sick pay, and holiday pay calculations.
2. Train management: Provide comprehensive training to managers and HR personnel on the new legal requirements and their practical implications.
3. Assess employment status: Regularly review the status of all workers, including contractors and freelancers, to ensure proper classification and provision of appropriate rights and benefits.
4. Enhance communication: Clearly communicate changes in employment law and company policies to all employees to promote understanding and compliance.
5. Seek legal advice: When in doubt about the interpretation or application of new employment laws, consult with legal professionals specialising in employment law.

For Employees

1. Know your rights: Familiarise yourself with the recent changes in employment law and how they affect your rights in the workplace.
2. Communicate with your employer: If you believe your rights are not being respected, discuss your concerns with your employer or HR department.
3. Consider flexible working options: Take advantage of the expanded right to request flexible working arrangements if it would benefit your work-life balance.
4. Monitor your pay: Ensure that your holiday pay and sick pay are being calculated correctly in light of recent changes.
5. Seek advice: If you’re unsure about your rights or feel they’re being violated, contact Acas or a trade union for guidance and support.

Conclusion

The recent changes in UK employment law reflect a growing emphasis on worker protection, flexibility, and equality in the workplace. By staying informed about these developments, both employers and employees can contribute to a fair, productive, and legally compliant work environment. As the employment landscape continues to evolve, it’s crucial for all parties to remain vigilant and adapt to new legal requirements promptly.

Remember, this guide provides a general overview of recent changes in UK employment law. For specific legal advice tailored to your situation, always consult with a qualified legal professional.